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1) they may obtain much better than market prices using this method

2) they obtain money now for something they only have to sell in the future… “now” money is worth more than “future” money

3) there is the possibility that the prospective purchaser will default, leaving the owner with a windfall deposit

4) tenants will probably treat the property a lot better if they will eventually own it.

5) their financial master plan may involve them selling that property in a few years regardless

6) … the most obvious : they don’t expect particularly great capital appreciation going forward

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That’s selling a call option on real estate.

Why do investors sell call options? Why are they willing to give up future capital gains in return for money now?

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My matchbook-cover law education (which accounts for nearly nothing) says the CHMC is not only un-responsible for the quality of the homes that people build & buy, but in fact, the CMHC has no way to even FORCE builders to make better homes.

Since you want “someething useful” in these comments how about YOU refer to legal precedent that says otherwise?

Personally I think people are suing CMHC because there’s some possibility they’ll get money and damn the righteousness of it.

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I mean. HOLY COW. Really?

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Link

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Shoddy workmanship.

Not the building code, but good old crappy workmanship that wasn’t caught/enforced by an inspector.

Well, there was one case that I’ve come across of outright fraud, where excessive condensation was occuring inside a wall because the builder took the insulation out after the inspector signed off on it, to use it on another project.

What I learned when I bought my place, and was reminded of while recently helping a relative (who really wants to buy now, despite my advice to the contrary) is that sometimes, realtors lie. Other times, they don’t know and didn’t bother to ask, or they’re just completely oblivious.

Of the four buildings I did quick walk-around exterior tours of recently for my relative, all 4 were described as problem-free buildings, three were great Landmark Arms buildings, never a problem, will last forever!

…But three of the four had had some walls replaced with new wall assemblies, ongoing work (“that’s just water ingress, a little moisture, it’s not a leaky condo”)… Ugh, (some) realtors make me sick. At least my relative won’t be buying into any of the three leakers.

She made an offer on the fourth building, which I tentatively OKayed, but her offer was a little under asking, the only offer, and the owner refused to sell for any less than $6K *over* ask. That unit has since been taken off the market because the owner couldn’t get the price he wanted.

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You’d might as well blame CDIC for letting a bank make a car loan to someone who bought a lemon.

Put the blame where is belongs, with provincial and local governments who are responsible for writing and enforcing building codes and consumer protection legislation.

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You’re a publicly funded institution dedicated to giving sweet loving to pretty ladies?

If not then stop being a contrarian wiseass and add something useful to the conversation for a change.

On the other hand if you ARE being publicly funded for this service, where do I sign up for your job?

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I’m not sure that wanting to do something necessarily translates into a legal requirement to do something.

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So CMHC is committed to helping Canadians unless they actually need help?

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..and judging by the scent around the morning ‘smoke breaks’ at the construction sites I walk by in the morning there also seems to be a lot of weed to go around.

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